Can someone correct me here.
My understanding of Pension value when used for equalization of assets is this ... (I'll keep it simple here)
Basically the pension is valued at what would the person be able to pull out today every month multiplied by a number of years into the future.
So lets say that a person's pension entitlement was to be 400 dollars per month from today and lets say that it was determined based on their current age and all that they would be able to pull this out for the next 40 years. Would the pension value be calculated at 4800/year for the next 40 years equaling close to 200000???
I know this is simple and that there may be other factors such as indexing and such ... I'm just trying to get a handle on Pensions and the impact they can have in determining equalization of assets.
Thanks
Hubby
My understanding of Pension value when used for equalization of assets is this ... (I'll keep it simple here)
Basically the pension is valued at what would the person be able to pull out today every month multiplied by a number of years into the future.
So lets say that a person's pension entitlement was to be 400 dollars per month from today and lets say that it was determined based on their current age and all that they would be able to pull this out for the next 40 years. Would the pension value be calculated at 4800/year for the next 40 years equaling close to 200000???
I know this is simple and that there may be other factors such as indexing and such ... I'm just trying to get a handle on Pensions and the impact they can have in determining equalization of assets.
Thanks
Hubby
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